By - Press Release
Category - e Commercenepal
Source - http://www.washingtonpost.com
HONG KONG — Chinese e-commerce firm Alibaba Group’s $2.5 billion bid
to take its Hong Kong-listed unit private was cleared Friday by minority
shareholders, easing the way for CEO Jack Ma to gain more control over
his company’s destiny.
About 95 percent of Alibaba.com minority shareholders voted at a
special meeting to approve Alibaba Group Holding Ltd.’s offer to buy
back the 27 percent of Alibaba.com Ltd. that it doesn’t own for 13.50
Hong Kong dollars a share. That’s the same price at which the company
went public in 2007.
The offer could cost up to HK$19.6 billion ($2.5 billion).
Alibaba.com, a business-to-business website, has said that going private will allow it to restructure and make long-term strategic decisions as growth slows after years of rapid expansion without pressure from shareholders worried about the depressed stock price.
The company plans to improve the quality of its site to attract more manufacturers, wholesalers and trading companies paying to use it. The number of users has started dropping and Alibaba says reversing that decline could hurt financial results.
Hangzhou, China-based Alibaba Group also operates Taobao.com, China’s version of eBay, and TMall, which brand owners can use to sell directly to consumers. Alibaba also runs a search engine for shoppers and an online payment service.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Source - http://www.washingtonpost.com/business/alibabacoms-shareholders-approve-23b-privatization-bid-for-chinese-e-commerce-company/2012/05/24/gJQA6aXboU_story.html
Category - e Commercenepal
Source - http://www.washingtonpost.com
 | |
|
The approval comes less than a week after Alibaba Group said it
was buying back roughly half of struggling U.S. Internet company
Yahoo’s stake for $7.1 billion, as the Chinese company starts to
extricate itself from a relationship that has grown strained over the
years.
The offer could cost up to HK$19.6 billion ($2.5 billion).
Alibaba.com, a business-to-business website, has said that going private will allow it to restructure and make long-term strategic decisions as growth slows after years of rapid expansion without pressure from shareholders worried about the depressed stock price.
The company plans to improve the quality of its site to attract more manufacturers, wholesalers and trading companies paying to use it. The number of users has started dropping and Alibaba says reversing that decline could hurt financial results.
Hangzhou, China-based Alibaba Group also operates Taobao.com, China’s version of eBay, and TMall, which brand owners can use to sell directly to consumers. Alibaba also runs a search engine for shoppers and an online payment service.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Source - http://www.washingtonpost.com/business/alibabacoms-shareholders-approve-23b-privatization-bid-for-chinese-e-commerce-company/2012/05/24/gJQA6aXboU_story.html
No comments:
Post a Comment